Russia-Ukraine Conflict Drives Wheat Prices to Three-Year High
Chicago wheat futures reached a three-year high on Thursday after reports that Russia may intensify its strikes against Ukraine, fueling concerns of prolonged interruptions to the Black Sea grains trade.
The conflict has already halted grain loadings in Russian and Ukrainian Black Sea ports, and industry players say this has provided a market for a rally ahead of the latest developments. The Chicago Board of Trade's most traded wheat contract was $1.31-1/2 higher, or $7.61-1/2 a bushel.
Jon Marcus, principal owner of Lakefront Futures, noted that while this development was the spark that ignited the fire, it has been smoldering for some time. Importers are looking for alternative origins in what is normally a busy period for Russian and Ukrainian products.
Two vessels will be calling in France to load wheat bound for Egypt, which imports over 80% of its wheat from Russia and Ukraine. The price of corn also rose due to lower expectations for U.S. corn production in the coming harvest, while soybeans were supported by a run in Chinese demand.